In a survey of Canadian cities conducted by MoneySense
, Thunder Bay residents were revealed to have some of the most stable incomes in Canada, with average household income clocking in at $81,000. The benchmark price for homes in the city is only around 2.5 times this amount, at $216,000; this is in stark contrast with the hottest Canadian markets, where average real estate prices are six (Toronto) and nine (Vancouver) times the average household income.
According to the MoneySense
study, this development can be largely attributed to Thunder Bay’s position as a central hub for Canada’s roads and railways.
In addition, the city is shielded from the devaluation of oil and manufacturing by-products, the effects of which are still severely felt by the Canadian economy. This is especially surprising, the report noted, since Ontario has been one of the hardest hit by the severe contraction in manufacturing and petroleum.
Thunder Bay’s secret lay in its diversified income base, the study explained.
“Canada’s Gateway to the West has been methodically rebuilding itself as a knowledge economy centre, attracting jobs in the medical, educational and government sectors,” it stated.
“While it may seem a stretch for a family to pick up and move to Thunder Bay, just because it ranks No. 1, investors looking for an income property certainly might be curious,” the report added.
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While the extremely active real estate markets of Toronto and Vancouver would remain Canada’s heavy hitters for the foreseeable future, the Northern Ontario city of Thunder Bay has been found to host the fastest appreciating homes in the country.